TeraWulf Inc. (NASDAQ:WULF) shareholders will have a reason to smile today, with the analysts making substantial upgrades to next year's statutory forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with analysts modelling a real improvement in business performance. TeraWulf shares have been sold down a little recently, so investors may be hoping the latest upgrade changes the market's appetite for the business. Over the past week the stock price has fallen 5.6% to US$2.03.
Following the upgrade, the latest consensus from TeraWulf's four analysts is for revenues of US$119m in 2024, which would reflect a huge 115% improvement in sales compared to the last 12 months. Losses are predicted to fall substantially, shrinking 92% to US$0.028 per share. Yet prior to the latest estimates, the analysts had been forecasting revenues of US$104m and losses of US$0.066 per share in 2024. We can see there's definitely been a change in sentiment in this update, with the analysts administering a sizeable upgrade to next year's revenue estimates, while at the same time reducing their loss estimates.
See our latest analysis for TeraWulf
The consensus price target rose 8.8% to US$3.70, with the analysts encouraged by the higher revenue and lower forecast losses for next year.
Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that TeraWulf's revenue growth is expected to slow, with the forecast 84% annualised growth rate until the end of 2024 being well below the historical 916% growth over the last year. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 12% annually. So it's pretty clear that, while TeraWulf's revenue growth is expected to slow, it's still expected to grow faster than the industry itself.
The Bottom Line
The highlight for us was that the consensus reduced its estimated losses next year, perhaps suggesting TeraWulf is moving incrementally towards profitability. Fortunately, analysts also upgraded their revenue estimates, and our data indicates sales are expected to perform better than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, TeraWulf could be worth investigating further.
Analysts are definitely bullish on TeraWulf, but no company is perfect. Indeed, you should know that there are several potential concerns to be aware of, including major dilution from new stock issuance in the past year. You can learn more, and discover the 1 other flag we've identified, for free on our platform here.